21Shares launched the 100% physically-backed 21Shares dYdX ETP (DYDX) on Euronext Paris and Euronext Amsterdam on September 11, 2025, expanding its European crypto-asset product line.

The Event in Detail

On September 11, 2025, 21Shares AG, a prominent issuer of crypto exchange-traded products (ETPs), announced the launch of the 21Shares dYdX ETP (DYDX) on Euronext Paris and Euronext Amsterdam. This new product is 100% physically-backed by the DYDX token, tracking its performance. The ETP carries an annual management fee of 2.5% and has an ISIN of CH1454621793. This addition brings 21Shares' European product lineup to 48 crypto-asset ETPs, with total assets under management (AUM) reaching $11 billion.

Financial Mechanics and Product Specifics

The 21Shares dYdX ETP provides investors with exposure to the DYDX token through traditional banking or brokerage accounts. As a physically-backed product, it directly holds the underlying DYDX tokens, distinguishing it from synthetically replicated products. The DYDX token itself is integral to the dYdX platform, one of the first decentralized exchanges (DEX) to offer perpetual futures contracts. These contracts allow users to speculate on cryptocurrency price movements without direct ownership of the underlying assets or expiration dates. The platform’s design is noted for its distribution of over $50 million in USDC to users, diverging from models that rely on inflationary rewards or indirect token buybacks. This approach aims to deliver recurring cash flows in a transparent and sustainable form.

Business Strategy and Market Positioning

The introduction of the dYdX ETP aligns with 21Shares' strategic expansion within the European market, demonstrating its commitment to offering a diverse range of innovative crypto products. This initiative leverages 21Shares' established legacy as one of the pioneering firms globally to develop, issue, and manage crypto-asset ETPs. The choice of dYdX as an underlying asset highlights its position as a significant player in decentralized finance. The dYdX platform maintains approximately 15,000 weekly active traders and generated $7.7 billion in trading volume in July. The total addressable market for decentralized perpetuals is projected to reach $4 trillion in volume by year-end, indicating substantial growth potential. dYdX has facilitated over $1.5 trillion in cumulative trading volume, representing more than 20% of the $7.2 trillion transacted across decentralized perpetuals to date. This launch underscores the increasing formalization and accessibility of decentralized finance protocols through regulated financial instruments.

Broader Market Implications

The listing of a regulated dYdX ETP on major European exchanges is poised to increase both institutional and retail investor exposure to the DYDX token, potentially enhancing its liquidity and price stability. This development signals a broader trend of traditional financial markets integrating with decentralized finance, bolstering the legitimacy and accessibility of crypto assets. Experts like Matteo Greco of Fineqia International Inc. note that ETP investors tend to be less price-sensitive, contributing to market stability. The expansion of such regulated products is seen as crucial for integrating DeFi into structured offerings, creating new investment opportunities and driving demand in the digital asset market. This move further bridges the gap between traditional finance and decentralized ecosystems, akin to how Valour's ETPs provide access to digital assets via a familiar ETF structure.

Expert Commentary

Matteo Greco, a senior associate at Fineqia International Inc., stated that the resilience of global exchange-traded product assets, holding above $200 billion for the second consecutive month in August, demonstrates the stability these products bring. Greco observed that ETP investors are "much less price sensitive" than crypto-native investors, which helps provide stability to the market. He also pointed to the potential for catalysts in the ETP space, including the approval of additional crypto assets by the US Securities and Exchange Commission (SEC), which could enable new staking products, and the evolution of yield strategies in Europe. Greco emphasized that integrating DeFi into structured products is a key area of exploration for creating new investor opportunities.